A major finding by Heaton and Lucas (2000)is that:
A)the market rate of return does not help explain the rate of return of individual securities and CAPM must be rejected.
B)the market rate of return does explain the rate of return of individual securities.
C)the change in proprietary wealth helps explain the rate of return of individual securities.
D)A and C.
E)none of the above

Question

Quizplus · Accepted Answer

The correct answer is D because Heaton and Lucas (2000) found that both the market rate of return and the change in proprietary wealth help explain the rate of return of individual securities.

A Major Finding by Heaton and Lucas (2000)is That